Hols fears if hotspots ‘snubbed’
THE impact of coronavirus on the travel industry is potentially grim.
The UK travel business is still picking up the pieces after the multi-billion pound collapse of Thomas Cook.
So if coronavirus spreads into mainstream sunshine destinations such as Spain, Turkey, Greece and Portugal it could cause an industry downturn, especially if the crisis rumbles on into the peak summer season.
The ban on flying to Sharm Elsheikh in Egypt after the 2015 terror attack on a Russian jet was a factor in Monarch Airlines’ failure.
Its Tunisia routes in north Africa were also hit by terrorism and it lost the core of its business. That did not help Thomas Cook, either.
Quarantine
That said, airlines and cruise lines have moveable assets and can redeploy them away from affected areas to places where there is still demand, as British Airways has done from its Chinese routes to Miami, Cape Town, Seattle and Bangalore.
However, easyjet is cancelling some flights and is investigating cost-cutting measures.
The International Air Transport Association says global lost revenue may be £23billion, with a five per cent passenger drop.
It adds that carriers in the Asiapacific region could lose more than £21billion of revenue in 2020 as passenger numbers slump by 13 per cent.
A spokesman said: “These are challenging times for the global air transport industry. Stopping the spread of the virus is the top priority.”
So far, despite the challenges it faces in northern Italy, Tenerife and with the Diamond Princess quarantine in Yokohama port, Japan, I believe the UK travel industry is holding its nerve... for now.
And it’s swings and roundabouts, as if Brits do cut back on their foreign holidays, then it will likely be beneficial for the staycation business.